Concept of Alternative Item group functionality in BOM

When there are several alternative components in an assembly, you can enter these in the bill of material and combine them by grouping the alternative items.These alternative items are taken into account when exploding the BOM during the planning run and when reservations are generated against orders.

If an alternative item is defined as a material to be discontinued in its material master, you see a warning when you enter the alternative item group in the BOM: When the BOM is processed in related application areas (for example, MRP), the alternative item overrides the discontinuation data.

An item in an alternative item group cannot be a phantom assembly

Data to be maintained in BOM:

Priority : Defines the priority of the item within an alternative item group. This determines the priority for planned withdrawal of items.

Strategy: Strategy will determine how selection of the item for planned withdrawal is controlled within the alternative item group.Strategy should be the same for all alternative items in an alternative item group.If the value 2 (100% check) is defined for the strategy, the first material in the defined priority sequence for which sufficient quantities are available is reserved.

Usage Probability: MRP plans these alternative material components according to probability of use.Percentage is entered to show the probability of using an object in production. Material requirements for the BOM components are planned according to the usage probability. The planned withdrawal for the production order is based on reservation lists. These lists are based on the priority and strategy for the alternative item.

Process Steps:

Maintain PIR for FERT material in MD61

Run MRP (MD02)

Check Stock Requirements List (MD04)

Convert Planned Order to Production Order ( CO40 or CO01)

Reservation List (MB24)

Scenario 1: What is the impact on MRP and Reservation List if Master data like different priority, strategy 1 and different probability % is maintained for alternative items in BOM.

Conclusion : When alternative item strategy is maintained as 1(Manual maintenance/by usage pr) in MRP Run and Reservations stock availabilty and does not have any role. Probability % maintained will drive for procurement proposals quantity and reservations will be generated on probability % only.

Production Order created for FERT material M-800 for 100 qty as displayed below

Production Order – Component Overview:

System generated reservation for alternative materials 1(T-T029) and alternative material 2(100-210) for qty 140 and 60 as displayed below.

Priority does not have any impact on reservation when strategy is maintained as 1 (Manual maintenance/by usage pr)

Step 5 :Reservation List (MB24)

Scenario 2: What is the impact on MRP and Reservation List if Master data like different priority, strategy 2 and different probability % is maintained for alternative items in BOM.

Conclusion : When alternative item strategy is maintained as 2(100% check) in MRP Run system will generate procurement proposals as per the Probability % maintained. In case of reservations based on priority stock availability will be checked for the alternative materials and accordingly system will create reservation.

Production order created for FERT material M-800. In case of strategy 2, system first checks the priority and for priority 1 material system checks the stock avialabilty. Stock is available for both the alternative materials, but system proposed reservation for priority 1 material T-T029 for 200 qty as shown below. ie; Probability % is not considered.

Step 5: Reservation List :

Reservation list is displayed below.

FAQ’S:

1. What happens if the stock of priority 1 material is not available, but stock of priority 2 material is available?

Solution:

Stock of priority 1 material (T-T029) = 100 qty

Stock of priority 2 material (100-210) = 500 qty

As displayed below, system created reservation for priority 2 material as stock is available only for priority 2 material.

Reservation List for Priority 2 material is displayed below:

2. Can we maintain Pobability % as 0 (ZERO) for any one of alternative material ?

Solution:

Yes you can maintain. System will throw warning message but it will be saved.

3. What happens if probability % is maintained as 0 (ZERO) for any one of alternative material ?

Solution:

MRP will not plan any requirement for that material and in order also system will not generate any reservation quantity.